COVID-19 Update 6/5/2020


More PPP Flexibility

The U.S. Senate passed the House version of Paycheck Protection Program (PPP) legislation on the evening of June 3rd, tripling the time allotted for small businesses and other PPP loan recipients to spend the funds and still qualify for forgiveness of the loans.

The Senate approval sends the House bill, called the  Paycheck Protection Flexibility Act, to President Donald Trump, who is expected to sign it.

Following is a summary of the legislation’s main points compiled by the American Institute of Certified Public Accountants: 

  • PPP borrowers can choose to extend the eight-week period to 24 weeks, or they can keep the original eight-week period. This flexibility is designed to make it easier for more borrowers to reach full, or almost full, forgiveness.
  • Under the language in the House bill, the payroll expenditure requirement drops to 60% from 75% but is now a cliff, meaning that borrowers must spend at least 60% on payroll or none of the loan will be forgiven. Currently, a borrower is required to reduce the amount eligible for forgiveness if less than 75% of eligible funds are used for payroll costs, but forgiveness isn’t eliminated if the 75% threshold isn’t met.  Rep. Chip Roy (Texas), who co-sponsored the bill in the House, said in a House speech that the bill intended the sliding scale to remain in effect at 60%. Senators Marco Rubio and Susan Collins indicated that technical tweaks could be made to the bill to restore the sliding scale.
  • Borrowers can use the 24-week period to restore their workforce levels and wages to the pre-pandemic levels required for full forgiveness. This must be done by Dec. 31, a change from the previous deadline of June 30.
  • The legislation includes two new exceptions allowing borrowers to achieve full PPP loan forgiveness even if they don’t fully restore their workforce. Previous guidance already allowed borrowers to exclude from those calculations employees who turned down good faith offers to be rehired at the same hours and wages as before the pandemic. The new bill allows borrowers to adjust because they could not find qualified employees or were unable to restore business operations to Feb. 15, 2020, levels due to COVID-19 related operating restrictions.
  • Borrowers now have five years to repay the loan instead of two. The interest rate remains at 1%.
  • The bill allows businesses that took a PPP loan to also delay payment of their payroll taxes, which was prohibited under the CARES Act.
  • The Small Business Administration will issue implementing regulations and amend the application for PPP loan forgiveness in accordance with the Act.

The deadline to receive a PPP loan remains June 30, so if you intend to apply, contact your lender ASAP.


Member Calls

Two member roundtable Zoom calls are scheduled in July.  Join in the conversation!

  • Collision members, attend the BS Session on July 8, from 11:30 a.m. – 12:30 p.m.
  • Mechanical members, attend the Mech XChange on July 15, from 11:30 a.m. – 12:30 p.m.


Do You Have a Plan?

A subject of interest on recent member calls was the importance of having a written plan to address coronavirus-related practices and procedures in your shop.  A plan “in your head” simply doesn’t cut it.  It’s important that it be documented and communicated throughout the shop so that everyone is on the same page when it comes to protocol and actions to be taken.  It can also provide some safeguards for your business in the event a determination needs to be made as to where an infected employee is likely to have contracted the virus – in the workplace or elsewhere. 

We’ve previously directed you to the following resources:

In addition, Alliance member Heppner’s Auto Body has shared their protocol here.

This is what Alliance membership is all about – sharing information and helping each other to strengthen the industry as a whole.  Thank you, Heppner’s, for leading by example!


Governor Further Eases Restrictions

Governor Walz announced today (6/5) a further easing of restrictions relating to COVID-19.  Effective June 10th, the following guidelines will be in place: 

  • Up to 25 people can now gather outdoors, with 10 still the limit indoors.
  • Restaurants and bars can have indoor seating up to 50% capacity with a maximum of 250 people indoors or outdoors. Masks are required for workers and strongly encouraged for customers. Reservations are required.
  • Hair and nail salons, barbershops can go up to 50% capacity. Patrons and workers must wear masks. Reservations are required.
  • Places of worship are going up to 50% capacity, 250 maximum.
  • Gyms and fitness centers are being allowed to open for the first time since their closure, at 25% capacity. Masks are encouraged as often as possible, and group exercise classes are allowed if social distancing can be maintained.
  • Movie theaters, bowling alleys, arcades, museums, indoor entertainment venues opening at 25% capacity not to exceed 250.
  • Outdoor entertainment like movies in the park, concerts allowed to resume with maximum of 250 people.
  • Pools can open at 50% capacity.



Note: This content and analysis is for informational purposes only and should not be construed as legal advice. Please consult your legal and financial advisors for detailed information before taking any action.



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